Homestead & Co. Podcast with Zach Sikes

Here’s how the 90-day flip rule could affect you as a homebuyer. The 90-day flip rule is something seasoned Realtors often forget about and something new Realtors might not even be aware of. If you are a homebuyer with an FHA loan, this rule means you can’t contract a new property unless you have held title for at least 90 days. This often comes into play if you’re purchasing a flipped or rehabbed property, so always check the county records to see exactly when the current owner took title of it. Let’s say the current owner took title on January 1. The FHA buyer may not contract that property until at least March 2. This protects buyers from having inflated prices on properties. If you have any questions about the 90-day flip rule or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here’s my advice about winning against multiple offers in today’s market. We’re seeing multiple-offer situations more often than not in today’s real estate market. Due to historically low inventory and interest rates, demand is sky-high. There are just about 3,300 homes for sale right now, when we historically have had between 7,000 and 10,000 this time of year. The rate that homes are coming on the market hasn’t slowed - it’s up 5% from last year. However, buyer demand is up so much that it’s chewing through inventory while also driving prices up. A lot of buyers are missing out on homes they are making offers on. We never want to overpay for a property, but we don’t want to miss out on the home of your dreams. “Put your best foot forward first.” Our advice is simple: Make the best offer you can whether you get the home or not. If you get the house, you won’t have buyer’s remorse, and if you don’t get the house, you won’t be kicking yourself in the tail because it was the best you could do. You’re much better off putting your best foot forward than putting a tentative one out first. If you have any questions for me about multiple offers or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Happy holidays to you all; your support this year helped us help others. Merry Christmas, and thank you for your support; we appreciate the trust you place in us to help with your real estate needs. We’ve had an excellent year here at Homestead and Co. because we’ve been able to help a record number of families. Without all of you, we couldn’t have delivered such a high level of service. Happy holidays, and let us know if you ever have any real estate needs.

Here’s why you shouldn’t dismiss the idea of a holiday home sale. Most people assume that there are more homebuyers active in the spring and summer markets, so they wait to list their homes until those seasons roll around. While that assumption is correct, it also leads to much higher competition among sellers—if every seller waits for the same advantage, then there’s no real “advantage” at all.  Here’s a real-world example: We hovered around 3.6 months of inventory through October, November, and December of 2019. (The lower the months of inventory, the less competition among sellers in our marketplace). In January 2020 alone, we bumped up to 4.9 months of inventory; before the spring market even hit, competition already started heating up. If you wanted to face less competition as a seller and stand a better chance of attracting serious buyers, would you have picked the fourth quarter of 2019 or the first quarter of 2020 to list?  “If every seller waits for the same advantage, then there’s no real ‘advantage’ at all.” If you think 3.6 months of inventory sounds like quite the low-competition environment and you’re sorry that you missed out on it, don’t fret—in this fourth quarter of 2020, we have less than 1.5 months of inventory! The current supply of available homes for sale in our market is astonishingly low; why wait until more sellers flood the market next year? If you’ve humored the thought of selling your house sometime in the next six months to a year, I highly encourage you to think about doing so now. Take advantage of this hot market filled with motivated buyers who are begging for more options. I assure you that the buyers who are out looking at homes during the holiday season aren’t looky-loos—they likely have to buy, though their reasons may vary.  A buyer who absolutely must relocate for a new job or accommodate a sudden life event will be much more likely to pay a higher price for your home than a spring or summer buyer who’s just “exploring their options.” If you’re ready to take the first step toward a quick, top-dollar sale, please reach out to any of our agents here at Homestead & Co. We’d love to hear about your specific selling needs and work with you to maximize your home sale. 

We wouldn’t be where we are today without your support for our team over the years. As a result, we’ve continued to grow, and now we need to grow our staff and were hoping you could help out. If you or someone you know is humble, hungry, smart, and interested in starting a career in real estate, we’d love to hear from you. Our goal is to staff up as quickly as possible, so reach out as soon as possible. To learn more about this opportunity, watch this short video above.

What kind of loans are used most commonly in our market? Let’s discuss.   In our local market, there are four types of home loans we see used more often than any others. Today, I’ll share what each of them is and what they entail. 1. FHA loans. While this loan is commonly associated with and used by first-time homebuyers, you don’t have to be buying your first home to make use of it. Buyers of all types will be happy to know that this loan allows them to get into a property for just 3.5% down. However, there is a $294,000 maximum loan amount for this product.  2. VA loans. These loans are specifically designed for veterans, who can use it to buy a home with zero down. The max loan for this is also fairly generous, at around $453,000. Better yet, the loan also reduces or removes the expense of mortgage insurance, depending on your circumstances.  3. Conventional loans. This is perhaps the most common type of loan product. Those who use it can put as little as 3.5% down, but submitting a down payment of at least 20% is preferable if you want to lower your monthly payments.  4. Jumbo loans. If you need to borrow more than $453,000, this is the loan product you’ll need to get.  If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon. 

When you’re considering the investment worthiness of a property, it’s easy to forget the factors that should be paramount in your decision. Here are three to keep in mind:  1. Monthly principal payments. We’ve talked a lot about positive and negative cash flow, but let’s not forget that every month you’re paying down the principal balance on the mortgage, which serves as a sort of forced savings. When trying to discern a good deal from a bad deal, compare the principal you’d pay on a given property to other types of long-term investment for retirement.  “Real estate is one of those assets that appreciates each year, yet it depreciates in the eyes of the tax law.” 2. Potential additional income derived from late fees. Every now and then, a tenant might be late on their rent payment, and you’ll earn a little extra income from the attached late fee. Everyone’s happy in the end: The tenant is able to stay in the property for a small fee on top of rent, and you feel justly compensated for the late payment. 3. Appreciation over time. This is why I love investment property. Real estate is one of those assets that appreciates each year, yet it depreciates in the eyes of the tax law. Did you know you can actually depreciate your property while you own it by deducting the cost of buying or improving it? Before you go this route, though, be sure to consult with your CPA on what’s most appropriate for your specific situation.  If you have any questions or would like more details about these key factors when investing in real estate, please don’t hesitate to let me know. I hope to hear from you soon!   

When it comes to real estate investing, it’s not uncommon for beginners to miscalculate their cash flow. Many mistakenly believe that because they’re renting their property out for $1,000 a month, yet only paying $700 to $800 in monthly mortgage costs, it must mean they have a positive cash flow. In reality, they’re simply failing to account for other expenses. Instead, consider this approach: the 50% rule. This rule asserts that 50% of the rent you collect should go to your monthly expenses and as long as your principal interest is below that 50% threshold, you’ll have a property with positive cash flow on your hands. If you have any questions or would like more information about buying, selling, or investing in real estate, don’t hesitate to contact us. We’d be happy to help!

When it comes to answering the question of how much you should spend on a fixer-upper home, we need to understand how to calculate the value of the property in its as-is condition before repairs. First, we need to address the ARV, or the ‘after repair value.’ This describes how much a property will be worth once all updates and repairs have been completed. To find the max sales price, we take the ARV and subtract from it the cost of those repairs and updates, as well as any potential profit. “The maximal sales price of a fixer-upper home is calculated by taking the ARV and subtracting from it the costs of repairs and the potential profit gained from selling the home.” Conversely, when we sell a home that needs updates, it’s critical to understand how a buyer looks at such a property. In this case, we take a similar approach: We subtract any costs for the repairs needed and we also have to account for the profit someone is going to make on the house when we sell it. Buyers won’t typically buy a house that needs work without some kind of incentive to take on the extra work and risk. To reiterate: The maximal sales price of a fixer-upper home is calculated by taking the ARV and subtracting from it the costs of repairs and the potential profit gained from selling the home. If you have any questions about this topic, don’t hesitate to reach out to me. I’d love to dive into this a little deeper with you.

Lately, you’ve probably noticed a lot of advertisements from companies claiming to buy your home outright for cash. Some of these companies are local investors, others are investing firms, and others still are huge real estate companies like Opendoor and Zillow. The truth is that though they may offer cash, these companies tend to offer sellers prices that are far below market value. Instant offer companies do provide a convenient avenue for distressed sales, but they aren’t right for everyone. If you want to learn more or have any other questions about whether this kind of arrangement would benefit you, feel free to give us a call or send us an email. We look forward to hearing from you soon.

We’ve had an amazing first quarter here at Homestead & Co., and we want to thank you personally for trusting us with your real estate needs. We’ve nearly doubled the number of families we’ve been able to help find a home, and without you, we wouldn’t have been able to provide this service. If you ever have any real estate needs, don’t hesitate to reach out to us. We’d love to help you.

Everyone wants to add value to their home before putting it on the market, but a lot of the advice about how to do so misses the mark. To give you a better idea of what does and doesn’t add value, we’ll be covering a few important points today. First of all, don’t add a pool. If you want to add this feature for your personal enjoyment, then “by all means” go for it. However, you should know that pools only bring about a 10% return on interest in terms of market value.  It isn’t just “fun” home upgrades that offer little value. Practical repairs like a new roof or a new HVAC system will also bring little to no return. Buyers expect these areas of your home to be in good, working condition. Instead of seeing it as added value, they simply see it as a given.  “Upgrading your home won’t always bring more value, but strategic improvements can still help you sell.” But what about new carpet or paint? These two items almost always appear on lists of the best upgrades to make before you sell, but the truth is that they will only add value in certain circumstances. If a home badly needs freshening up, new carpet and paint are a good idea. If the home is already in near-perfect condition, though, new carpet and paint won’t make as big of an impact as you might expect.  The bottom line is this: Upgrading your home won’t always bring more value, but strategic improvements can still help you sell if your home isn’t up to its full potential without them.  If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon. 

Imagine this: You’ve found the perfect home, submitted an offer, and gone under contract. You think everything is going smoothly, but then you get the results of the inspection report. It’s normal for this report to turn up issues, but the severity of these issues can vary vastly. However, it’s the way these problems are addressed that truly matters. In general, a buyer will be more likely to ensure quality repairs are done than a seller, who will usually have their focus elsewhere. Even the most well-intentioned sellers may be tempted to fall back on a quick fix rather than a long-lasting solution. Most sellers simply don’t have the time to focus on repairs given everything else they’ve got to handle during their home sale. “Even the most well-intentioned sellers may be tempted to fall back on a quick fix rather than a long-lasting solution.” If the seller does choose to take care of repairs, though, they should always hire a third-party contractor. This person has no stake in the transaction. Their sole focus is taking care of the issue at hand. Alternatively, a buyer may opt to ask for a credit from the seller. This allows buyers to get repairs finished in their own time and on their own terms. All in all, problems listed on an inspection report should not cause too much alarm unless they’re truly extreme. There are a number of ways to resolve these issues and keep the deal moving forward. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

One of the most-asked questions I hear as a real estate agent is, “How do I buy this pre-foreclosure on Zillow in order to save some money?” I’m going to explain today. When I pull up all of the foreclosures and pre-foreclosures on Zillow, you can see that the foreclosure homes have definite prices, while the pre-foreclosures just have an estimate. There’s actually a bigger difference between the two you should know. “A foreclosure home is actually for sale. A pre-foreclosure home is not.” A home that’s listed as a foreclosure is actually already for sale. If a home is listed as a pre-foreclosure, it’s technically not for sale. Zillow identifies these properties by a lis pendens, which essentially means that the homeowner has missed a payment or two on their mortgage and are in danger of pre-fault. Once they record the lis pendens on the title, it lets other people know that a couple of different things could happen: 1.The resident catches up on their payments. 2.The property goes into foreclosure, but we don’t know what price it will be until that time. 3.The property could be sold without hitting the market at all. In conclusion, if you’re looking for a home in the next few months, I’d steer clear of pre-foreclosures. If you have any questions for me about buying a home or about real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Today I want to take a break from real estate to thank you for an amazing 2018. As the new year approaches and we reflect on the year that’s passed, we were able to help an unprecedented number of families buy and sell homes. We were also able to develop some great relationships with other phenomenal agents, which allowed us to raise the bar on our customer service and lay some amazing groundwork for an explosive 2019. We couldn’t have done any of this without you, and you can always trust us with your real estate needs. To hear our full message as we close the book on 2018, watch this short video.

Closing costs seem to be somewhat of a mystery to many. They’re are essentially additional fees (outside of the down payment) that are associated with the purchase of a home. Today we’ll be using a program to calculate example payments you’ll find in your closing costs. You can follow along with the video example starting at 00:35. For the example, let’s say the purchase price is $250,000 with a 10% down payment, an interest rate of 4.99%, and a 30-year conventional mortgage loan. There is also a 1.1% cost for hazard insurance and 1.12% for taxes. “These are the costs you’ll be paying when you purchase a home.” After the numbers are crunched, the total closing costs (not including the $25,000 down payment) are $7,379.06. This amount is broken down into prepaid costs, title fees, lender fees, and other fees. Prepaid costs are incurred by the buyer after closing and include insurance, escrow, and some interest. Title fees facilitate the closing of the property and provide protection for the buyer, and include title policies, closing fees, attorneys, GAP coverage, and more. Lender fees ensure the home is in good shape and include appraisals, inspections, and surveys. These are the costs you’ll be paying when you purchase a home. If you have any questions or need further information, feel free to reach out to us. We look forward to hearing from you.

It can be hard to remove personal feelings from a real estate deal. After all, our homes are incredibly important to us. So when it comes time to buy or sell a home, it can be hard to know whether you’re making decisions driven by logic or whether you’re letting your emotions take the wheel. Today we’ll be covering five strategies that can help you determine whether you’re making choices for the right reasons during your buying or selling experience: 1. Ask yourself: If you sleep on the decision, will you feel the same way in the morning? Sometimes in the heat of the moment, we can convince ourselves that a certain choice is the only way to go. After giving ourselves more time to think, though, we may come to a different conclusion. Applying this strategy to the decisions you make during your home purchase could save you from making a major mistake.  2. Ask yourself: Are you thinking about your feelings, or about what makes the most sense? Everyone wants to earn the best possible deal when it comes to real estate. With that being the case, the people on the other side of your transaction may have a very different idea of how things should proceed. If this happens, it’s important not to let any of the emotions this might bring out cloud your judgment.  “When it comes time to buy or sell a home, it can be hard to know whether you’re making decisions driven by logic, or whether you’re letting your emotions take the wheel.” 3. Ask yourself: Is what you want to say going to actually help, or just make you feel better? Any conversation that will legitimately move the deal forward is one you should certainly have. That said, it’s best to think twice before blurting out something you might regret.  4. Ask yourself: Are you simply reacting on impulse, or are you thinking through your decisions? Gut reactions are rarely the most fruitful responses in a real estate deal. Acting in accordance with a carefully thought-out plan will be much more helpful to your ultimate goal.    5. Ask a trusted advisor for their opinion. Sometimes, the answer you need can’t come from within. Seeking out the guidance of a professional, instead, may sometimes be your best option. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.  

Most people assume that springtime, or the first quarter of the year (Q1), is the best time to sell your home and that wintertime, or the fourth quarter (Q4), is a bad time to do it. According to the numbers, though, this simply isn’t true. Although it is true that more homes sell during the first quarter, there are fewer homes that come on the market during the fourth quarter, so the absorption rate is higher during that time. For example, during the fourth quarter of 2017, there were 1,014 new listings that came on the market and 834 homes that went under contract. If you do the math, that’s the market absorbing 82% of the new inventory. “If you’re thinking of selling your home sometime in the next six months, I highly recommend doing it during the fourth quarter of this year instead of the first quarter of next year.” During the first quarter of this year, there were 1,446 new listings that came on the market and 1,121 homes that went under contract, which means the market only absorbed 77% of the new inventory. As you can see, more homes sell during the first quarter, but the competition is also higher, which is why the chances that you can sell your home during that time actually decrease by 5%. If you’re thinking of selling your home sometime in the next six months, I highly recommend doing it during the fourth quarter of this year instead of the first quarter of next year. If you have any more questions about the best time to sell your home or you have any other real estate needs I can help you with, don’t hesitate to give me a call or send me an email. I’d love to help you.  

If you plan to sell your home this fall, there are five points you should keep in mind: 1. We’re still in a strong seller’s market. A balanced market is one which has six months of available inventory, yet our current market has just three months’ worth of supply right now. In other words, sellers currently have a strong advantage.  2. It’s important not to overspend on updating your listing. Doing some home improvements before you list can help you earn top dollar, but not all projects will be worth the investment. Partnering with your agent to determine which updates will bring the best ROI will be essential.  3. The more people who see your home, the better. Don’t limit the number of showings you take on.  “Only professional agents have the knowledge, experience, and resources necessary to achieve optimal results in our market.” 4. Fairly priced homes will see the best results. With that in mind, make sure you don’t overprice your home. Even in a strong seller’s market, overpricing can extend the time your listing sits on the market and ultimately lose you money.  5. Hiring an agent to help with your sale is crucial. Trying to sell your home on your own would be a huge mistake. Only professional agents have the knowledge, experience, and resources necessary to achieve optimal results in our market. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.  

If you’re looking to buy a new home but you also have a home you need to sell, you have three options in which to proceed. First, you can buy a new home before selling your current one. This option requires the most out-of-pocket cash since you are owning two homes at once, but it is also the most convenient. You also get the chance to lock down the perfect home. Second, you can sell your current home before buying the new one. This option is less risky, but it’s also less convenient. With this option, you will have an accelerated timeline to find and close on your next home, but it could result in you losing out on your dream home. Third, you can do a back-to-back close. This is where you close both transactions on the same day, within the same hour. There are a lot of variables involved with this option, though, so you should discuss it with your agent before deciding to try it. “Each of these options has its benefits and drawbacks.” If you have any questions about any of these options or are thinking of buying or selling a home soon, please feel free to reach out to me. I would be happy to help you.

Today I’ve got a quick market update for you for the first half of 2018. The numbers are in and we’ve got great news. The Oklahoma City metro market is strong. New listings are up by 8.7%, which means more homeowners are listing their homes. New pending sales are also up 7.8%, which tells us that the market is ready for the increased supply and buyers are buying those homes up. Closed sales are up by 4.3%, which is also following that same trend. “We’re in a strong seller’s market with 3.7 months’ worth of inventory.” Here are a few more statistics that show how our market is seeing positive movement this summer: Our days on market is down 5% Our average sales price is up 3% Our median sales price is up 2.1% When you put all those numbers together, you can see that we are still in a strong seller’s market with a 3.7-month supply of inventory. If you’ve been thinking about selling your home this year, now is a great time to do that. If you have any questions for us or you’re thinking about buying or selling a home, don’t hesitate to give us a call or send us an email today. We look forward to hearing from you soon.

Today we’d like to extend our sincerest thanks to all of you who have supported us this year, as well as in years past. So far in 2018, we’ve already completed more transactions than what we did for the entirety of 2017. This is absolutely amazing, and we couldn’t have done it without our amazing staff, and, of course, our incredible clients. Thank you so much for trusting us with your buying and selling needs. To see our full message of gratitude, watch this short video.

If you want a pool on your property, is it better to purchase a home that already has one or to install one yourself? Today we will provide some insight into these options. First of all, it is important to note that the most sought-after pools in today’s market are concrete or gunite. The typical cost of these types of pools ranges from between $40,000 and $110,000. This figure does not account for the additional expenses of landscaping or fencing. As a general rule, pools tend to add between 10% and 20% of what they cost to install onto the value of a property. So if you spend $100,000 on a pool, your home value will only increase by $10,000 to $20,000. Therefore, homeowners who opt to install a pool should expect to lose money overall. “Homeowners who opt to install a pool should expect to lose money overall.” The bottom line is that it is often more economical to buy a home that already has a pool, but our team would be happy to discuss your options if you would like to have a more in-depth conversation about this topic. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

There are three important reasons why it’s great to have your own buyer representation when purchasing a home. 1. No discounts. You don’t get any discounts by going directly to the listing agent. In fact, that commission is negotiated between the seller and the listing agent.  2. The listing agent works for seller. By not using your own agent, in effect, you are using their agent, and they’ll get paid double. “By not using your own agent, in effect, you are using their agent, and they’ll get paid double” Think about this: Most people hire someone they know to help them sell their house. Around 65% of the listings are taken either from a referral or a previously known agent. If an agent already knows you they’ll likely have your best interests at heart. 3. Unbiased advice. On the buyer side, the agent is truly going to give you unbiased advice. They don’t care which house you buy, which means they can give you honest opinions about what would be the best choice for you. If you have any questions about this topic or would like to know more about buying homes, please feel free to reach out. We’d be glad to help you. 

Professional photography is an incredibly important part of marketing your home listing. During online home searches, people are obviously drawn to the listings with the best pictures. Pictures that were taken on a cell phone, in bad lighting, or where the photographer is visible in some reflective surface can all make an online listing look less appealing. So, when you list your home, it is critical that you show it off in its best light using professional real estate photography. The cost of professional photography is something we cover for everyone who lists with us. We believe that without a great product, you can’t have a great sale. Professional photography not only makes your home look great, it also helps your home sell more quickly. “Without a great product, you can’t have a great sale.” Years ago, I conducted a market analysis of recent sales in our local market. The results of this analysis showed me an interesting correlation between the number of photos a listing had and the number of days it spent on the market. Homes with the more pictures had fewer days on market. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Many people seem to be confused as to the difference between an appraisal and an inspection. So today, I will be going over what you need to know about these two processes. First, we always recommend you have an inspection performed any time you buy a home. This makes sure the property is safe and in working condition. Insurability, though, is one thing people sometimes forget about the inspection process. So talk to your insurance company and make sure the home is insurable. Inspections are optional, but we always recommend them. Appraisals, on the other hand, are a requirement whenever you are doing a financed purchase. An appraiser is selected through a randomized process by the bank to ensure impartiality. “Inspections are optional, but we always recommend them.” The appraiser will come in and place a value on the home. They want to make sure the home is sufficient in value to act as collateral for the bank and also that the home is safe, sound, and secure for an owner-occupied loan. Inspections are more thorough and time-consuming than an appraisal. Once an appraiser has finished looking at your home, they may make a few requests. These requests must be satisfied in order for the loan to go through. However, these requests are rare. Your agent can help you negotiate them if this situation arises. When an inspection is over, on the other hand, the results are just suggestions. Nothing the inspector recommends is a requirement. A buyer may ask for a credit, ask the seller to have items fixed, or simply accept the property as-is. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Whether you are a first-time homebuyer or it’s been a while since you last purchased a home, it’s important to understand what happens during the home buying process. There are six main steps that you should know about: 1. Setting your budget. If you aren’t paying cash, talk to a local mortgage professional who will guide you through the process and help prepare that budget. You will need to know how much cash you will need for the down payment and what your monthly mortgage payments will be. That way, you will be able to build a sales price budget and an overall home budget. 2. Analyze your needs and wants for your home. You will sit down with your real estate agent and explain your needs and wants for the home. Do you need a home in a good school district? Do you need more space or a higher quality home? If you buy a higher quality home, you may make some sacrifices in space. If you need more space, sometimes you may have to sacrifice on quality by foregoing certain upgrades. 3. Finding the right property. We will work together to put together a list of homes that you might want to see. I recommend that you pick your top five, and our agents will show all of those homes for you. “Figure out how much you need for the down payment and what your monthly payment will be.” 4. Make an offer. Once you find the right property, we will help you write your offer and negotiate the best price and terms for you. 5. Order an inspection. Once the home is under contract, we recommend doing a general inspection and a termite inspection. The bank will order an appraisal as a safeguard to make sure that you’re not overpaying for the home. We will guide you through the process of negotiating repairs. We’ll help you understand what’s important and what’s not important during that process to make sure that you don’t get in over your head or buy a house with a roof that’s caving in. 6. Closing. Closing takes place three to four weeks from the day you go under contract on the home. You will bring your money, sign papers, and get the keys so you can move into your new home. I hope you’ve found this overview of the home buying process helpful. If you have any more questions about buying a home, just give me a call or send me an email. I would be happy to help you!

What’s the difference between a short sale and a foreclosure? If you’ve ever wondered this, I have the answer for you today. Many people who are new to the market have heard they can get a great deal on a foreclosure and a short sale, but they may know what those terms mean. A foreclosure is when a homeowner goes into default. This means they aren’t paying their mortgage loan back. The bank will take the home back and then relist it for sale on the market. We have access to all foreclosure listings and can guide you through the process of buying one. “A short sale takes place when a homeowner goes into default on their mortgage but still owns the home.” A short sale, however, is when a homeowner is in default, but still owns the home. They haven’t been making their payments for 30, 60, 90, or 120 days, so in order to stave off a foreclosure, they try to sell the home. However, since they don’t have enough equity in the home to pay off the entire mortgage, the homeowner must “short” the payoff. This process is a little more time-consuming than a foreclosure because you’ll have to get multiple parties to approve the sale; the bank will have to agree to accept less than the full payout on the balance owed. This can take 75 to 100 days to complete, and you may find a better property in that time. For more questions about these topics, feel free to reach out to me. I’d be happy to help you.

In 2017, we helped 110 families buy a home, sell a home, or invest in real estate, and today we want to thank you for helping us do that. Our goal for 2018 is to help 250 families, and we look forward to your continued support and trust. As a thank you to our clients, we recently threw a wonderful Christmas party, and due to the overwhelming support for that event, we’ve decided to throw more special events throughout the year. These will be free events for our community as a way for us to continually say thank you, so keep an eye on your email inbox. “We look forward to your continued support and trust.” We also want to remind you that we host training classes for agents every month, and our community is invited to those training classes as well. We have two classes coming up in January, and one of those classes we think you’ll find very beneficial. It’s about real estate investment, and it will be held here at our office on January 21 at 1:30 p.m. To RSVP, just reply to this email or give us a phone call. If you have any other questions, don’t hesitate to reach out to us. We’d be happy to help you.

Is it a good idea to sell your home in the winter? To answer that, let’s look at a few statistics from the past year. Between January and February, over 2,500 home closed, which is roughly 12% of all the homes sales for the year. This tells us that real buyers are still out there during winter trying to buy homes. When you think about your ideal buyer, do you want a looky-loo who’s not that motivated or someone who needs to find a house and is serious about buying now? Typically, the person who needs to buy something is willing to pay more. “Typically, the person who needs to buy something is willing to pay more.” People looking for homes in the winter are typically more serious buyers, which means that although your home might have fewer showings, you’ll deal with much more qualified buyers. Homes still sell during the winter, so if you’re thinking of beating the inventory rush of May and June, don’t hesitate to give us a call or send us an email. We’d love to help you sell your home.

Today I want to talk about three general strategies for investing in real estate. 1. Rentals, or “buy and holds.” Essentially, we buy a property using either financing or cash and then rent it out. One strategy we use to rent out homes is to keep them occupied as much as possible. We prefer to give a little bit less than market rent to make sure we stay occupied, rather than holding out for an extra money and risk a vacancy. It helps get us a higher level of return over the life of the property.2. Flips, or “rehabs.” This is where we buy a property for below market value, possibly in a distressed condition that requires a lot of work, after which we’ll make some repairs and get it back to market value. Though this is a popular method on TV, these deals are harder and harder to come by, though some people can make a living doing them. “For a ‘buy and hold,’ we buy a property using either financing or cash and then rent it out.” 3. House hacking. This is a favorite strategy of mine. House hacking is when we buy a live-in renovation or multi-unit property on an owner-occupied financing plan where you get better terms. You can rent out the other units to help reduce the cost of living. If you’re interested in learning more about real estate investing or about any of the strategies mentioned above, feel free to reach out to us.

Now that October is over, we’ve aggregated all the data so we can take a look back and see exactly how the market’s been doing over the past few months. An additional 19% new listings hit the market this October compared to October 2016. That continues the trend from September, where we saw 20% more listings than the previous year at the same time. What is interesting about the difference between September and October is that there was a 30% uptick in new homes going under contract. This is a very healthy sign for our market. “The market right now is stronger than we thought it was.” When we see a rise in inventory levels such as the rise in new listings hitting the market, it always makes us want to watch the market very carefully. October came back roaring like a lion with that 30% upswing in homes going under contract. This gives us great confidence going into the winter market. If you’re thinking about selling your home soon but were waiting to see what the market would do, these last numbers from October show us that the market right now is stronger than we thought it was. Now could be the right time for you to sell your home. If you have any questions about the market or other real estate topics, feel free to reach out to us. We’d love to help you however we can.

I just wanted to reach out and say thank you for a phenomenal, record-breaking year. As we look back on the year Homestead & Co. branched out on its own, we are full of gratitude. We met some great people and helped some great families get into a home. We also helped many people sell their homes. “We couldn’t have done it without you.” We developed a lot of great relationships and brought some wonderful people onto our team so that we can help even more people achieve their real estate dreams. We couldn’t have done it without your referrals and support this year. Thank you so much. As always, if you have any real estate questions, please don’t hesitate to reach out to us. We would be happy to help you. Have a great Thanksgiving!

We just received our final numbers from September, and they confirm some hunches we’ve had about our Oklahoma City market recently. Year to date, our level of inventory is up 8.6% and our number of closed sales are up 4.6%. New listings hitting the market continue to outpace sold properties, so we might see a shift toward a buyer’s market coming soon. We thought as much back in September, and these numbers prove that notion. “There are a lot more homes hitting the market and a lot fewer homes being sold.” We saw an upswing of 21% more new listings in September 2017 compared to September 2016. There was also a 9% reduction in closed properties in September 2017 compared to September 2016. In total, that’s a 30% swing in inventory levels. There are a lot more homes hitting the market and a lot fewer homes being sold, so if your house has been on the market in the last several weeks or months, this reduced activity might make things more difficult. This is why it’s important that you work with an agent who’s in tune with the market so they can advise you properly and help you make the best decision for you and your family. If you have any more questions about our Oklahoma City market or you’re thinking about buying or selling a home soon, don’t hesitate to give me a call or shoot me an email. I’d love to help you.

If you are buying a home, odds are that you want to find the best deal possible. How can you do that? First, it’s important to know your goals. Do you want to keep as much cash in your pocket as possible? Do you want a lower monthly payment? Do you want to pay the house off as soon as possible? Or is the goal to pick up additional items, like the playset in the backyard, the golf cart, or the fridge? Once you know your goals, you need to figure out what the market is doing. What defines a good deal here in Edmond? Right now in the $200,000 to $300,000 price range, homes are selling for 98.5% of the asking price. That means that the average buyer is getting a 1.5% discount off the listing price. Since that is the case, if you get 3% off the listing price, then you get twice the discount the average buyer is seeing in our market. “First of all, know exactly what you are looking for in a good deal.” Now it’s time to find a home that lines up with your goals. We use a couple of strategies to identify homes that will be a “good deal.” 1. Look for a well-priced home that is new to the market. You have to be ready to go and have all your ducks in a row. Make sure you have a pre-approval letter or proof of funds letter. You have to decide quickly if you want to make an offer on the home. The key here is to make your offer and lock the property up before there are multiple offers on the property; that is what will keep the sales price low. 2. Look for a house that has been on the market for a long time and gone through several price reductions.The seller might have overpriced the home to try and get more money, but that failed. Now that the home has been on the market for five months, buyers think, “This looks like a good house at a good price, but it’s been on the market awhile. What’s wrong with it?” More than likely, there is nothing wrong with the home; the seller just made a pricing error. As a buyer, you can take advantage of that situation. 3. Look at vacant homes. Whether the seller has to sell or can hold onto the property for a long time doesn’t matter. There are still costs such as taxes, utilities, and insurance payments that the seller will not be able to recover. As a result, vacant properties will have a more motivated seller. If you have any other questions about finding the best deal in today’s market, just give us a call or send us an email. My team and I would be happy to help you!

If you’re thinking of listing your home FSBO or you already have, I have an important topic to discuss with you today. In our market, there are four different types of buyers. Understanding each of them is the key to making sure your home sells for top dollar. Here are the four different types of buyers: 1. Serious and in a hurry. These buyers are the most aggressive. Whether they need to get into a home because they just sold theirs or they had an unexpected job transfer, they are ready to make a move. 2. Serious and not in a hurry. Some of these buyers are homeowners who don’t have to move, but would if the right property came along. Some of them are first-time homebuyers who are proceeding very cautiously as to not make a mistake. “Understanding each of these types of buyers is key.” 3. Investors. If you’ve already listed your home For Sale By Owner, you may have received a few calls from them already. Most of the time, these buyers are just looking for a deal, so they prey on FSBO sellers and make lowball offers in the hopes of getting a deal. 4. Looky-loos. I don’t even know if you can call them buyers. Most of the time, they can’t even qualify for a loan and are just looking at homes for fun or to get some decorating ideas. They will lead you on until the cows come home. When you look at each of those types of buyers, you can see that serious buyers are the ideal buyers. However, most of those buyers are going to be working with agents who already have listings to show them. They probably won’t even see yours if you list FSBO. If you sell your home on your own, it’s your job to know which buyers are which and help all of them. If you can’t do that on your own, hiring an experienced professional like myself is the right move. If you have any other questions about real estate or the market, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

How does our current OKC market compare with where we were last year? From July 2016 to July 2017, the number of new listings hitting the market increased 8.6%, the number of pending sales increased 16%, and the number of closed sales increased 4.7%. What’s interesting about these statistics is the falloff between pending sales and closed sales, and it’s definitely something to keep an eye on throughout the rest of the year. “If you’re a seller, now would be a good time to put your home on the market” Year to date, new listings are up 10.7%, pending sales are up 8.1%, and closed sales are up 5%. Ideally, we’d like to see the numbers of sales keep pace with the number of new listings. This gap means inventory is rising and we’re continuing to shift toward a buyer’s market. If you’re a seller, now would be a good time to put your home on the market to maximize its potential return. When we look at the housing affordability index, July 2017 experienced a 2% drop compared to July 2016. Year to date, housing affordability has dropped nearly 6%. Although 6% doesn’t seem like much, that number can mean a significant difference in the lower price ranges, so that’s another thing we’ll pay attention to for the rest of the year. If you have any questions about our market or you’re thinking of buying or selling a home, don’t hesitate to give us a call or shoot us an email. We’d be glad to assist you.

What is the process of buying a new home like when you already own one? It can be tricky, but there are several ways in which to go about it. Here are four different options you have if you want to juggle buying a home and selling another at the same time. 1. Keep the existing home and turn it into a rental property. Owning rental property is a great way to build wealth and we highly recommend it. However, you need to consult with your lender beforehand to see if it’s even an option. 2. Buy the new house first, then sell your old home. The main benefit of this is only having to move once. It makes the process a bit smoother and less risky, too. The downside is that you may have to carry two mortgages at once and there is generally a high financial risk involved. “It all depends on what kind of risk you are willing to take.” 3. Sell before buying the new house. This has the lowest financial risk, but it’s a risk nonetheless. In this case, you risk not being able to find the house you want before your home sale closes. However, you can likely negotiate a rent-back or extended closing. 4. Make a contingent offer on a home before selling. This is our preferred option because it’s the least financially risky. We won’t start the inspection or appraisal processes until we remove all our contingencies. This allows us to have the first right of refusal within 24 hours. If another offer comes in, we will have the opportunity to match or beat it. If you have any questions for me about this topic or anything else related to real estate, give me a call or send me an email. I look forward to hearing from you.

Understanding pricing strategies can make a big difference in selling your home. Oftentimes, I encounter people who falsely believe that the best route is to overprice a home, and then bring it down if it isn’t working. But, imagine for a second in this circumstance that you’re the buyer. When you put on your “buyer hat,” it isn’t hard to see why someone looking for a home might be deterred from an overpriced listing. Imagine one home that has just gone on the market, where the sellers have barely had time to put the sign in their yard. Then, imagine a property that has been on the market for 180, or even 210 days. “The longer we’re on the market, the lower the offers will be.” If these properties were exactly the same, how would your offers be different? The truth is that most people will offer less for a home that has spent more time on the market. The longer we’re on the market, the lower the offers will be. So selling sooner rather than later is key. If you are a buyer, however, you can use this fact to get a great deal. By finding a home that’s spent a lot of time on the market, and has no other issues other than having been initially priced far too high, you could have a great opportunity to get into a house that may now actually be cheaper and see less competition. As a seller, though, you want to avoid this situation. When you price your home too high, it’s inevitable that you will likely sell it for even lower than what you could have gotten if you had just priced it right the first time. If you have any other questions or want more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

I’ve got a quick market update to share with you today regarding the OKC metro market. Here are the latest numbers as we head into the dog days of summer. We had a great month in May, closing just over 2,400 units. That’s 29% more closings than we had just last month. However, we saw a dip in new and pending contracts this month. Overall, we are seeing about 8,000 active units on the market and just over four months of inventory available. That puts us in a seller’s market. “It’s more important than ever to hire a market expert.” While the market as a whole favors sellers, the market shifts as you go up in price. For homes priced under $200,000, it’s a hot seller’s market. For homes priced between $200,000 and $500,000, we are in more of a balanced market. As for homes priced above $500,000, we are in a buyer’s market with excess inventory. It’s now more important than ever to hire someone who understands the market trends, the numbers behind them, and all the marketing and pricing strategies that will help you get your home sold for top dollar. If you’ve been on the market trying to sell a home and your activity has dropped off recently, you need to stop and evaluate to make sure you’re priced correctly. Reach out to us and we can help. If you have any other questions in the meantime, don’t hesitate to give me a call or send me an email. I would love to hear from you soon.